Taxes & Incentives
Keystone Opportunity Zones (KOZ):
KOZ programs offer opportunity for land development that will greatly reduce state and local taxes. KOZ’s offers a true sense of partnership between state and local taxing bodies, school districts, economic development agencies, and community-based organizations. KOZ are considered the number one economic development strategy in the nation. Tax liability for the businesses is dependent upon the situation; the tax burden may become zero through exemptions, deductions, abatements, and credits for the following:
- State Taxes: Insurance Premiums Tax, Mutual Thrift Institutions Tax, Alternative Bank and Trust Company Shares Tax, Bank Shares and Trust Company Shares Tax, Sales Use Tax, Personal Income Tax, Capital Stock Foreign Franchise Tax, Corporate Net Income Taxes.
- Local Taxes: Sales and Use Tax, Local Real Property Tax, Business Privilege and Mercantile Taxes, Business Occupancy, Business Gross Receipts, Earned Income/Net Profits Tax.
The impact of a KOZ is to attract development where minimal activity has existed before. Future Taxes are anticipated in addition to job growth and development.
In Clearfield County, our main attraction for KOZ land is the Commerce Park that is 162 acres of land that is shovel ready for development.
Local Economic Revitalization Tax Assistance (LERTA):
LERTA was created to allow local taxing authorities to exempt improvements to an industrial property if such properties are located in a deteriorated area. Property improvements eligible for exemption under LERTA include repairs, construction or reconstruction, including alterations and additions, rehabilitating a deteriorated property to make it habitable or to attain a higher standard of safety, improvements for health concerns, economic use, and improvements to comply with laws. LERTA is not to exceed 10 years.